WHAT IS THE $1000 PROJECT?

My passion and determination for showing you how easy it is to manage your own money was what triggered the creation of the $1000 Project.

I really believe that having control over your money is easy – and, more importantly, so many emotional benefits flow from self-discipline in this area of your life. It will give you positive feelings that you deserve to have and carry with you every day of your life, and it only takes a few small changes to create an empowering result.

My background is in financial planning – I talk personal finances every day. I worked in financial planning part time while I studied at university and after graduating I worked for various financial planning companies, including a major Australian bank, before going out on my own at age 26 to set up my boutique practice, SASS Financial.

I’ve always been passionate about inspiring people and demonstrating how simple it really is to achieve financial health. But recently I realised that if I wanted to really wake the world up – to ignite excitement and motivation in the dull and overwhelming area of cash flow, budgets and savings – I would have to lead by example. And that meant getting out there and showing people the very powerful effect of small savings that accumulate and compound over the long run.

So I set a very ambitious goal for myself, which I announced on my YouTube channel, SugarMamma.TV. I shared it with my subscribers so that I would feel accountable. I explained that I wanted to build a passive income of $2000 a year, and that I would do that by saving, earning, creating and building parcels of $1000 at a time. Every time I had $1000 saved up, I would invest in some blue-chip Australian shares and international Exchange Traded Funds. These are investments that pay dividends, a form of passive income.

I gave myself a twelve-month deadline, by which point I wanted to have saved and invested enough money so that my investment portfolio was earning $2000 p.a. in passive income. I used an average dividend rate of 5% p.a., the average dividend yield for the Australian share market, which meant I would need to come up with and invest $40 000 – all within twelve months! So the goal I set myself with the $1000 Project was forty ‘parcels’ of $1000 in one year.

One of the best things about the $1000 Project is that you can start small, work with what you have and work at your own pace and with your own rules – and you control everything. It is simple and easy to follow. And it will teach you a lot about yourself: what you value, what is important to you, and how much strength and determination you really have inside of you. It is empowering. If you get on board with the $1000 Project, I promise you will not regret it.

WHY WE NEED THE $1000 PROJECT

What is different about this project is that it will finally give you something to show for your hard-earned money.

When you add up how much money you’ve actually earned so far in your working life, from the moment you started your first full-time job to right now, and see the accumulated dollar amount of your gross salary, most people baulk in horror. The average Australian salary is $75 000 p.a. So if you are 35 years old, you would have earned roughly $1 000 000, assuming that you started work at 21 and averaging that salary out over your working history. When people do their own more accurate calculations, they ask themselves: ‘Where has all my money gone?’

This project helps stop that feeling of being clueless and out of control. Next time you ask yourself that question, you will be able to proudly point to a share portfolio that you have built and which is still growing, or to the mortgage that you have paid off, or to the student loans that have evaporated. Or maybe you will simply point to your passport, full of stamps and valuable memories. One thing is for sure: you can choose how you use the $1000 Project to your best financial advantage.

Financial stress can be toxic. Toxic to our health, to our relationships, our careers and our sense of security. But this is an area where we have so much more control than we realise. When we are at peace with money – by which I mean that we feel like we have enough, we feel no negative feelings such as fear, we have trust that it will continue to flow in, we have control over how we choose to spend it, and we use money with respect – the weight comes off our shoulders. This gives us more energy and time to focus on what makes us feel really wealthy: connections to the people around us and living with a sense of purpose and value in the world. I call this ‘money mindfulness’.

This isn’t a book about materialistic gain. It is about creating financial harmony in your life, so that you are freed up to focus on being the best person you can be. It will help you to know and understand what is important to you and what you value, and then you can choose to live by that.

In dreaming up the $1000 Project, I wanted this challenge to help people learn golden lessons about their finances and their relationship with finances. I really wanted to show people how to save money, how to understand the flow of money, how to be more respectful of their cash flow, and how to make better financial decisions and how to feel proud of their finances. And, as a flow-on effect, I was hoping to educate people about how to consciously use their money in a healthier and more efficient way, which would help them to create a more harmonious financial future.

Whether you use the $1000 Project to pay off student debt, credit cards or car loans, or to save for a deposit on a home or an investment property, or, perhaps most excitingly, to build a passive income stream – this is life-changing stuff.

MY PROJECT: HOW I DID IT

STEP 1: BREAK DOWN GOALS

As a starting point, I looked at how I’ve achieved my own financial goals in the past. What were the common actions that kept me on track and on schedule? What kept me motivated and feeling like I was heading in the right direction? What kept me focused and passionate so that, when temptation came my way, it deepened my determination and brought me back to the present moment.

I realised it was obvious. When I’d reached previous goals the common denominator was the basic formula of taking a big goal and breaking it down into smaller, more manageable and therefore achievable goals. Small goals that weren’t intimidating, scary or unrealistic. They almost felt easy, and this created a sense of excitement and achievement with each little goal kicked – which generated more momentum!

So I set out to build an investment portfolio using parcels of $1000 at a time. Like building a house brick by brick. I took conscious action every time I earned some extra money or saved some money and put it aside so that I could do something great with it.

Head down, bum up, I worked on saving, earning and creating money, focusing on bite-sized amounts. I went to all sorts of lengths to earn and save and then invest that money. But there was one big rule that I set for myself – and this was an important rule – I could not take any money out of my existing salary or savings.

STEP 2: THIS IS NOT ABOUT SALARY

I really wanted people to realise how important it is to not define yourself or limit yourself by your salary or what you earn. Sure, you may earn a small humble salary, but you also have the opportunity and ability to look, find and create ways to bring wealth into your life, beyond the boundaries of your wage. And to be honest, money has very little to do with what you earn. It’s about what you do with what you earn.

Countless times I’ve heard people say, ‘Oh, I can’t afford to save, or pay off my debt, or invest. I don’t earn enough money . . .’ Or, ‘Investing is only for wealthy people.’ Or, ‘When I earn more money, I will think about becoming more financially responsible,’ or, ‘When I settle down,’ or, ‘When I am older,’ or, ’When I meet the man of my dreams . . .’ When people say this, they are holding themselves back from the first steps needed to start great success today. I cannot tell you how many everyday people on humble salaries I have met who have amassed extraordinary wealth. Simple actions and habits, matched with consistency, determination and a commitment to happily living within their means, have enabled them to create a seriously impressive and inspiring pool of wealth and financial independence.

I have also seen plenty of the opposite. I have met people with huge salaries, with close to nothing to show for it, who are in fact living pay cheque to pay cheque. Their lifestyles have only increased with their pay rises and bonuses, and they seem to spend it all before the money has even been deposited into their bank account. They have to keep paddling faster and harder just to keep their heads above water. The stress and pressure on their shoulders is exhausting and ageing. I want you to realise that you are perfectly capable of making additional money. You have skills, items of value, information and knowledge that, if used properly, can be very potent and efficient tools for creating extra money in your life, which can be directed towards building a much more financially secure, stable, consistent and independent future for yourself.

STEP 3: SET UP FOR SUCCESS

With every goal that we set for ourselves, we need to feel passionately connected to it and excited by it. If we don’t get those feelings of deep determination and commitment, the goal can quickly turn into a chore. And chores are easy to put off.

We need to understand our ‘why’, and our ‘why’ needs to be the trigger of our positive, enthusiastic ‘this will be worth it’ attitude. Knowing and understanding our ‘why’ is what will get us through the tough times, when we feel flat, frustrated and want to throw in the towel. Our ‘why’ will push us to step up to our next level of ability any time we feel the pull of procrastination or even of quitting.

As soon as I set the goal of a passive income of $2000 p.a. in twelve months’ time and connected to my ‘why’, it triggered so much enthusiasm and excitement within me that I wasted no time. I immediately went into operation mode.

Firstly, I opened a separate online savings account, linked to my personal everyday account, and named it ‘The $1000 Project’. Having an online account meant that I didn’t have to pay any account-keeping fees, and it was quick and easy to deposit money into it. Plus, being an online savings account, I could earn some interest (albeit a tiny amount). It all adds up!

Nicknaming the account ‘The $1000 Project’ gave me a stronger sense of purpose, direction and intention. I knew that every dollar deposited into that account was dedicated to my personal challenge. When I checked the account, I could see exactly where I was up to with my goal and how close I was to reaching my $1000 target, and this helped me stay focused and motivated. It also defused the temptation to remove money from the account for anything other than buying more passive income investments.

I’ll explain the importance of passive income in more detail later in this book, but broadly speaking, passive income is money that you do not, physically, need to do anything to earn. I like to describe it as like earning money while you sleep. It’s your money working for you. Examples of passive income include rent, interest and dividends – my choice was dividends from shares. Because you control the $1000 Project, you can also choose your type of passive income. But more to come about this later.

Every time I deposited money into this account, I wrote in the description box what I’d done to earn it. This helped me when reviewing my progress, as I could see what was working best and what was the most efficient and effective activity to get me closer to my goal.

Then I put together what I call a ‘hit list’ – I brainstormed as many ways as possible to earn extra money outside of my salary. I bought a notepad and wrote ‘$1000’ forty times in it. Next to each $1000, I listed all the things I could do to create that parcel of money. I wrote down as many different ideas as possible – no idea was too silly or extreme, which allowed me to get creative, and, most importantly, kept me open-minded. Plus, by writing it down, I was putting my goal and desire out into the universe. Seeing it written in black and white, I was bringing it into the physical world, where it could grow into a reality.

I carried that notebook everywhere I went, so that as soon as I came up with an idea, or someone gave me an idea, I wouldn’t forget it, even if it was in the middle of the night or if I was in the shower. For those times when for some rare reason I didn’t have my trusty notebook with me, I would either send myself a text message with the idea or write it in the notes section of my phone. And as soon as I had my notebook back in my possession, I would add the idea to my list. This meant that all my ideas ended up in one place, so they could be considered, planned and put into action.

As soon as I had enough ideas and activities listed to keep me busy, I set out to work on my first $1000. I put actions behind my intentions, and I ploughed all my energy and focus into coming up with that $1000.

STEP 4: DIVE RIGHT IN!

To get into the project as quickly as possible and to make good headway early into the timeline, I started with the quickest and easiest ideas first. For me, these included selling unwanted clothes, furniture and household items on eBay and Gumtree. Then I did market research jobs where I was paid in cash to talk about my opinion and experience for various products and services – everything from cars to washing detergents . . . I even taste-tested crackers once for $30 cash!

It didn’t matter how small the money was, because I knew that every dollar counted. It all meant that I was heading in the right direction towards achieving my ultimate goal.

I also learnt to exercise self-control when it came to spending money. For example, if I had a special event coming up and I needed a new dress, I would either borrow or rent a dress for the evening, and put some of the savings into the $1000 Project account. I actually got a sense of relief not spending money all the time and found it very grounding. It was almost like an act of self-love and preservation, putting this money towards something that would be of great value in my future.

To help create further savings that I could put towards the $1000 Project, I rented my house out on Airbnb for weekends when I was away. I entertained in my own home instead of heading out to restaurants and bars. I learnt to enjoy the peace and nurturing benefits of having quiet and simple weekends at home. I even did a ‘Frugal February’ challenge, where for one whole month I put myself on a financial fast, only buying the absolute necessities.

The moment I had $1000 sitting in my $1000 Project account, I transferred the money to my share-trading account and purchased $1000 worth of shares. I found that by moving the money out of my account and sending it on its way to getting me closer to my $2000 p.a. passive income goal, I focused my energy on manufacturing the next $1000.

STEP 5: TRACK PROGRESS

Every time I purchased some shares, I monitored my progress against a percentage system, so that I could see and feel that I was making progress and that all my hard work and dedication was paying off. For example, when I purchased $1000 shares, with an estimated dividend of 5.5% p.a., that meant that I was earning $55 per year in passive dividend income, which was 2.75% of my goal. Yes, that sounds small, but the next time that I bought $1000 worth of shares, with a similar estimated dividend yield, I would be earning $110 p.a. and would be 5.5% of the way to achieving my goal – which is a 100% improvement! Seeing that positive reinforcement is encouraging and gives you a valuable sense of progression.

I would do this every time I knocked another $1000 off my list, slowly getting closer and closer to my goal. And I would review my progress, my next required action and my brainstorming hit list every day: it became a habit that was so automatic and embedded in my head and actions that success began to feel inevitable. Sure, there were times when I ran out of ideas, but I simply returned to doing things that had worked previously.

Every time I came up with $1000, I also shared exactly what I did to create that money, where I invested it and what my percentage was up to on my SugarMamma website and on my YouTube channel. I was hoping that my financial diary would inspire others to join in with me and see how the project could help them get back in control of their financial future.

I also shared what I was doing with my family and friends, so that they could understand what I was passionately working towards. Not only did they give me encouragement and support, but they also contributed suggestions and ideas, and even very occasionally employed me on new paid jobs outside of my ordinary working hours.

WHAT I LEARNT

There were times where I was in these incredible manifesting zones, with constant flows of ideas and opportunities to create extra cash, and I powered through the parcels of $1000 in quick, efficient bursts. And then, of course, there were periods where the next $1000 was painfully slow, and I would experience immense frustration.

To be perfectly honest, at times I felt exhausted and simply over it. But when I felt like that, I would go back to my initial goal and ask myself: How will I feel when I’ve achieved this? What is my ‘why’ and why is it important to me? The thought of feeling that pride of achievement was enough to kick any lethargy to the kerb quick smart, and it reinvigorated my self-belief and determination again.

And every time I did something to earn extra money for the $1000 Project, I learnt something about myself and about what I really value. I learnt that having a home-cooked meal over a restaurant meal is better for my soul; that entertaining friends in my home is far more personal and intimate; that saying no and exercising self-control when it comes to shopping gave me greater appreciation of what I already owned. I felt proud of being more selective and conscious of the decisions I made around the way I chose to use money.

I learnt that using my voice to share what I was working on could inspire others, which drove my own energy and motivation.

I learnt that saying no to certain expensive activities sometimes created a sense of relief. I learnt about delayed gratification.

I learnt that I didn’t need to outsource as much in my life, and that, with a little bit of organisation and preparation, I am more capable than I realised.

I learnt how essential having a foundation of good health and fitness is for maximum energy and inspiration.

I learnt that having a goal to work on increased my sense of self-worth and self-belief. I learnt that saving money is not about depriving yourself but actually showing self-love and respect for your financial health, both now and for the future.

I learnt about the importance of creating memories. I learnt to appreciate the simple things in life again. I learnt about the value of great relationships and connections that actually make us feel wealthy.

I learnt about my own weaknesses and triggers that could sabotage my results – and how to avoid these.

And most importantly, I learnt never to underestimate the power of consciously taking action in small ways to make a big difference.

When I reached my twelve-month deadline, I’d saved and invested $32 000. And I’d built a 100% cash-flow-positive passive income stream of over $1700 p.a. While I was a little short of my ambitious goal, I felt a great sense of pride, as I knew that I’d done the best job I could.

I donated the $1700 to the Gidget Foundation, a charity that supports women going through perinatal anxiety and depression, which is something I struggled with after my son was born. Trying to get out of that scary, dark place was tough, and while I’d recovered before I dreamed up the $1000 Project, it definitely helped me to avoid slipping back into that headspace again. For me, the $1000 Project gave me something to channel my anxious energy towards; it gave me something to shift my focus to; it gave me a sense of direction and purpose; and it helped me believe in myself and my ability to make improvements in my life . . . All these little but important things gave me my self-worth back again.

My plan is to support a different charity every year by donating the passive income that I build.

YOU CAN DO IT TOO

I’m a self-employed single mother, divorced twice. I had an expensive divorce, with a lot of judgement about it being my second one so early in my life. I have a three-year-old, two dogs that need a lot of exercise and attention and a mortgage, and I live in one of the most expensive cities in the world. At school, I really struggled to keep up with my incredibly bright friends: I had a stutter, and I’m dyslexic and hypersensitive beyond belief. I also enjoy and appreciate a few little luxuries, including champagne, fashion and travel, and, most importantly, spending time with my family and friends.

I juggled all these things while trying to put on a brave face to the world and learning the lessons that I needed to grow wiser. And I did the $1000 Project at the same time.

So if I can get through this and still find ways of creating and saving extra money, and then consciously use that money to build something that gives back to the community, imagine what you could do for yourself!

When I finished the $1000 Project, I took a breather for a few months. I needed some time to recharge and relax. When I announced that I was starting round two, I was blown away by the number of people who watch my YouTube channel who were doing their own versions of the $1000 Project. A lady from New Zealand was preparing for an earlier retirement; a gentleman from the UK wanted passive income from shares; a young beautician running her own business was saving for international holidays; a mother from Sydney wanted to send her children to private school; a lady from Canada was saving money to set up and invest in her herb business, another young couple were doing the $1000 Project to help pay for IVF . . . The emails and stories left me feeling touched and honoured. Some people used the $1000 Project to pay for family holidays – and one couple used it pay for their wedding!

I also received emails and comments from people who had been using the principles of the $1000 Project to pay off credit card debt they’d been carrying for years. They decided enough was enough and the $1000 Project was their catalyst for change and a new financial experience. I even had people tell me that they’d paid off their mortgages using the $1000 Project! Student debt, car loans, personal loans – one women even used the $1000 Project to save for reconstructive surgery that she’d never thought she’d be able to afford. There were also women just like me, rebuilding their lives after a broken relationship: slowly piecing themselves together again and re-emerging from their shells into the light.

And I received notifications and messages from people who had started building share portfolios, and even property portfolios. The project was not only helping people save and get out of debt, it was also helping them to build real, authentic wealth.

Two common themes quickly became apparent. The first was that a lot of these people were describing a new-found pleasure and sense of self-respect from being more mindful with their money, which then allowed them to make better, more empowering financial decisions. And secondly, people doing the $1000 Project were actually progressing and evolving financially with it. Once people got out of debt using the project’s principles, for example, they weren’t stopping there. They were taking their new skills to the next level and building up savings and investments and creating passive income for themselves.

The $1000 Project will allow you, too, to consciously pave a path to a much healthier, happier and more fulfilling financial future. It’s a journey full of adventure, insight, enlightenment and self-discovery, where financial freedom is very much an achievable goal, well within your reach.